Access, Diamond Banks Sign Agreement to Merge

Access Bank Plc and Diamond Bank
Plc yesterday ended months of speculations over their future when they finally
agreed to merge, signing a Memorandum of Agreement, which if approved by the
Central Bank of Nigeria (CBN) and the Nigerian Stock Exchange (NSE), would move
Access Bank, the principal partner, from number four to number two or number
one in the nation’s banking hierarchy, if the current growth trajectory of
Access Bank is maintained.

Another source confirmed that the deal has been sealed and awaiting final
ratification from the regulatory body.

Last week, Diamond Bank announced its
decision to drop its international operating license to focus on national
operations following capitalization issues.

Uzoma Dozie, the bank’s Chief
Executive Officer, confirmed the development in a statement released on Friday.
Dozie had said: “With this approval, the bank will cease to operate as an
international bank.

“The re-licensing as a national bank supports Diamond Bank’s objective of
streamlining its operations to focus resources on the significant opportunities
in the Nigerian retail banking market, and the economy as a whole. The move
follows Diamond Bank’s decision to sell its international operations, which
included the disposal of its West African Subsidiary in 2017 and Diamond Bank
UK, the sale of which is currently in its final stages.”

“The change to national bank status also enables the bank to maintain a lower
minimum capital requirement of 10 per cent, as against 15 per cent required for
international banks.”

The bank recorded its worst month on record in November
with share plunging to 0.61k per unit on November 30, 2018.